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Shares of drug firm plunge on reports over bribing doctors
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Shares of Sino Biopharmaceutical Ltd slid more than 24 percent in the morning session before it halted trading after one of its subsidiaries is reported to have paid for doctors' overseas tours, which could be considered offering bribes.
Chia Tai Tianqing Pharmaceutical Group is reported to have taken groups of doctors to travel to Thailand and Taiwan under the name of academic meetings, CCTV reported yesterday.
Hong Kong-listed Sino Biopharmaceutical has 60 percent of stake in Chia Tai Tianqing and is the latest pharmaceutical company to catch public attention as the country steps up efforts to clamp down on corruption.
Sino Biopharmaceutical halted trading on 11:49 am today pending the release of an announcement in relation to clarifying certain information contained in recent press reports, according to a stock exchange filing.
The CCTV report on late Wednesday showed that groups of doctors from Jiangsu Province were taken to scenic spots in Thailand after a one-hour academic meeting discussing drug effects in a hotel in Shanghai.
The report also cited an unidentified company source as saying that doctors offered this kind of travel opportunities are those who have prescribed big amount of drugs or leaders in various hospital departments.
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